Tax debt is a serious problem faced by millions of hardworking taxpayers in the US every year. It makes people lose their property, file for bankruptcy, and has led to many serious heartaches and headaches. If you are struggling to pay the money you owe the IRS, don’t panic. There are a few tax debt relief options that can help you settle your tax debt. Continuing on the subject, in this blog post, we answer some of the commonly asked questions about IRS tax debt relief.
What is tax debt relief?
Tax debt relief is a provision put forward by the government to help taxpayers that are in debt to the IRS pay their dues. It comes in the form of a payment plan or settlement with the help of which taxpayers can settle their tax debt with the IRS.
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When can I apply for tax debt relief?
You can apply for tax debt relief when you owe the IRS but are unable to pay. To apply for tax debt relief, you will need to first prepare and file all your taxes. This helps you ascertain how much money you owe the IRS so as to explore debt relief and forgiveness options available to you. It is, however, advisable to complete your tax returns well in advance so that you and your tax debt attorney have enough time to solidify a tax debt relief plan.
What should I do to get tax relief from the IRS?
The first step towards attaining tax relief from the IRS is to hire an experienced tax debt attorney. Hiring a tax attorney with experience in dealing with such IRS problems can give you clearer direction in dealing with the IRS and give you peace of mind. A tax attorney works on your behalf including accepting all correspondence from the IRS and getting down to the bottom of your tax debt issue to create a plan to help you get the tax relief you need.
What are the available IRS Tax debt forgiveness programs?
There are several tax debt forgiveness programs such as Installment Agreement and Offer in Compromise that can help taxpayers settle their tax debt.
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Also known as a long-term payment plan, an Installment Agreement allows taxpayers to pay their tax debt in monthly installments. The total amount paid in installments can either be the full or partial amount of what is owed to the IRS. Some of the available installment agreement plans are – guaranteed, streamline, partial, and full pay. To qualify for the streamlined installment agreement, taxpayers must owe less than $50,000. If a taxpayer owes less than $25,000, they can simply apply for the installment program by completing Form 9465. In case the amount is more than $25,000 and less than $50,000 the taxpayer is required to submit Form 433-D.
Offer in Compromise (OIC)
Offer in Compromise(OIC) is an IRS program that allows qualified taxpayers to settle their tax debt for less than the total amount owed and is usually the only option when there are no other payment options available. To establish your eligibility to the program, a taxpayer must use the checklist in Form 656 (OIC). The IRS can, however, reject an OIC request, if it believes that the taxpayer can pay the amount in full or through an installment agreement.
If you are struggling with IRS tax debt, a professional tax debt attorney can help you navigate available IRS debt relief options and apply on your behalf. If you are looking for help in Texas, reach out to the Law Offices of Nick Nemeth’s team of seasoned IRS tax attorneys in Dallas/Fort Worth. Simply call (972) 484-0829 or fill out our contact form and we will take it from there.